(The following statement was released by the rating agency)
Dec 20 - Fitch Ratings has assigned Russia-based Credit Agricole CIB ZAO (ZAO CA), a 100%
subsidiary of Credit Agricole banking group (CA; A+/Negative), Long-term foreign and local
currency Issuer Default Ratings (IDRs) of 'BBB+' and a Support Rating of '2'. The Long-term IDRs
have Stable Outlooks. A full list of rating actions is at the end of this comment.
RATING ACTION RATIONALE AND DRIVERS: IDRS, NATIONAL RATING, SUPPORT RATING
ZAO CA's IDRs, National and Support Ratings reflect the high probability of
support from CA. Fitch's assessment of potential support takes into account CA's
full ownership of ZAO CA, the high level of management and operational
integration, common branding and the very low cost of potential support, in case
of need, given the insignificant share of the Russian entity in CA's total
assets. However, ZAO CA's Long-term IDRs are constrained at the level of
Russia's Country Ceiling, which is currently three notches below CA's Long-term
Fitch classifies ZAO CA as a subsidiary of 'limited importance' for CA, given
its very small size relative to the group and the limited overall importance of
emerging Europe subsidiaries for CA's operations. ZAO CA's ratings are therefore
likely to remain at least two notches below those of its ultimate parent, even
if the differential between CA's ratings and the Russian Country Ceiling
RATING SENSITIVITES: IDRS, NATIONAL RATING, SUPPORT RATING
ZAO CA's ratings could be downgraded if (i) the Russian Country Ceiling is
downgraded, together with Russia's sovereign ratings; (ii) CA is downgraded by
more than one notch; or (iii) CA sells ZAO CA to a more lowly-rated owner, or
Fitch changes its view of the willingness of the parent to support the
subsidiary. However, Fitch does not currently anticipate any of these scenarios.
If the Russian Country Ceiling was upgraded and CA's rating remained at the 'A+'
level, ZAO CA's Long-term IDRs may be upgraded by one notch, to 'A-'.
RATING ACTION RATIONALE: VIABILITY RATING
Fitch has not assigned ZAO CA a Viability Rating (which reflects a bank's
standalone strength) due to its high dependence on the parent. This is reflected
in the bank's limited domestic franchise (most clients are subsidiaries of
multinational clients of the group), high operational integration with the
parent, the parent's involvement in risk decisions and guarantees provided by CA
on ZAO CA's credit exposures.
The rating actions are as follows:
Long-term foreign and local currency IDRs: assigned 'BBB+'; Outlook Stable
Short-term foreign and local currency IDRs: assigned 'F2'
National Long-term rating: assigned 'AAA(rus)'; Outlook Stable
Support Rating: assigned '2'